Form 4: Universal Health Realty Income Trust Director Receives Restricted Stock Grant

Robert F. McCadden, a Director at Universal Health Realty Income Trust, was granted 821 restricted shares of beneficial interest, vesting on the second anniversary of the grant date.

Summary

• Robert F. McCadden, a Director of Universal Health Realty Income Trust (UHT), was granted 821 restricted shares of beneficial interest.
• The transaction occurred on June 11, 2025.
• These shares were granted at a price of $0 per share.
• Following this transaction, Mr. McCadden directly beneficially owns 13,250 shares of beneficial interest.
• The restricted shares were issued under the Amended and Restated Universal Health Realty Income Trust 2007 Restricted Stock Plan.
• The granted shares are scheduled to vest on June 11, 2027, which is the second anniversary of the grant date.

Sentiment

Score: 7

Explanation: The grant of restricted stock to a director is a standard compensation practice that aligns the director's interests with shareholders. It's a positive for the director and generally neutral to slightly positive for the company as it incentivizes long-term commitment, though it involves minor dilution.

Positives

• The grant of restricted shares aligns the director's interests with those of shareholders, as the value of the compensation is tied to the company's future stock performance.
• The issuance of shares under an existing restricted stock plan indicates a structured approach to executive and director compensation.

Negatives

• The issuance of new shares, even restricted, can lead to minor dilution for existing shareholders, though 821 shares is a very small amount for a publicly traded company.

Management Comments

• These restricted shares of beneficial interest were granted pursuant to the Amended and Restated Universal Health Realty Income Trust 2007 Restricted Stock Plan and shall vest on the second anniversary of the grant date.

Industry Context

This is a routine compensation event for a director in a REIT (Real Estate Investment Trust) or healthcare-related company. Such grants are common across industries to incentivize long-term performance and retention.

Comparison to Industry Standards

• Granting restricted stock to directors is a common practice in corporate governance across various industries, including REITs, to align director incentives with shareholder value creation.
• The specific size of the grant (821 shares) would need to be compared against typical director compensation packages for companies of similar market capitalization and industry within the REIT sector to assess its relative scale.

Corporate Governance

Related Party Transactions

• The grant of restricted shares to Robert F. McCadden, a Director, constitutes a related party transaction as it involves compensation from the company to a member of its board.

Stakeholder Impact

• Shareholders: Minor potential for dilution due to the issuance of new shares, but also potential for improved governance and long-term value creation through aligned director incentives.
• Director (Robert F. McCadden): Receives equity compensation, aligning personal financial interests with the company's performance.

Next Steps

• Vesting of the 821 restricted shares on June 11, 2027.

Key Dates

Keywords

Universal Health Realty Income Trust, UHT, Robert F. McCadden, Director, Restricted Stock, Stock Grant, Form 4, SEC Filing, Beneficial Ownership, Compensation Plan